WASHINGTON/BEIJING, Aug 23 (Reuters) - U.S. President Donald
Trump on Friday lashed back at a new round of Chinese tariffs by
heaping an additional 5% duty on some $550 billion in targeted
Chinese goods in the latest tit-for-tat trade war escalation by
the world's two largest economies.

Trump's move, announced on Twitter, came hours after China
unveiled retaliatory tariffs on $75 billion worth of U.S. goods,
prompting the president earlier in the day to demand U.S.
companies move their operations out of China.

The intensifying U.S.-China trade war stoked market fears
that the global economy will tip into recession, sending U.S.
stocks into a tailspin, with the Nasdaq Composite down
3%, and the S&P 500 down 2.6%.

U.S. Treasury yields also fell as investors sought
safe-haven assets, and crude oil, targeted for the first time by
Chinese tariffs, fell sharply.

Trump's tariff response was announced after markets closed
on Friday, leaving potentially more damage for next week.

"Sadly, past Administrations have allowed China to get so
far ahead of Fair and Balanced Trade that it has become a great
burden to the American Taxpayer," Trump said on Twitter. "As
President, I can no longer allow this to happen!"

He said the United States would raise its existing tariffs
on $250 billion worth of Chinese imports to 30% from the current
25% beginning Oct. 1.

At the same time, he announced an increase in planned
tariffs on the remaining $300 billion worth of Chinese goods to
15% from 10%. The United States will begin imposing those
tariffs on some products starting Sept. 1, but tariffs on about
half of those goods have been delayed until Dec. 15.

The U.S. Trade Representative's office confirmed the
effective dates, but said it would conduct a public comment
period before imposing the 30% tariff rate on Oct. 1.

Trump has accused China of unfair trade practices and pushed
for a deal that would rebalance the relationship in favor of
U.S. manufacturers and workers.

"We don?t need China and, frankly, would be far better off
without them. The vast amounts of money made and stolen by China
from the United States, year after year, for decades, will and
must STOP," Trump tweeted earlier on Friday.

"Our great American companies are hereby ordered to
immediately start looking for an alternative to China, including
bringing your companies HOME and making your products in the
USA."

It's unclear what legal authority Trump would be able to use
to compel U.S. companies to close operations in China or stop
sourcing products from the country.

Trump also said he was ordering shippers including FedEx (FDX)
. Amazon.com Inc (AMZN), UPS and the U.S.
Postal Service to search out and refuse all deliveries of the
opioid fentanyl to the United States.

U.S. business groups reacted angrily to Trump's latest
tariff escalation.

"It's impossible for businesses to plan for the future in
this type of environment. The administration's approach clearly
isn't working, and the answer isn't more taxes on American
businesses and consumers. Where does this end?" said David
French, a senior vice president for the National Retail
Federation.

"Time is of the essence. We do not want to see a further
deterioration of U.S.-China relations," Myron Brilliant,
executive vice president and head of the business group's
international affairs, said in a statement.

China's Commerce Ministry said that on Sept. 1 and Dec. 15
it will impose additional tariffs of 5% or 10% on a total of
5,078 products originating from the United States including
agricultural products such as soybeans, beef and pork, as well
as small aircraft. Beijing is also reinstituting tariffs on cars
and auto parts originating from the United States that it
suspended last December as U.S.-China trade talks accelerated.

"China's decision to implement additional tariffs was forced
by the U.S.'s unilateralism and protectionism," the Commerce
Ministry said in a statement.

"We want a deal, but it doesn't mean we want a deal that is
not based on mutual respect or good for China's interests," a
Chinese diplomatic source said. "If the United States levies
tariffs, China will have counter-measures."

(Reporting by Judy Hua, Min Zhang, Se Young Lee, Stella Qiu,
Hallie Gu and Dominique Patton in BEIJING, Yilei Sun in
SHANGHAI, David Lawder, David Shepardson, Doina Chiacu and Steve
Holland in WASHINGTON and Koh Gui Qing in New York
Additional reporting by Jason Lange, Andrea Shalal and Humeyra
Pamuk in WASHINGTON and Tom Polansek and Julie Ingwersen in
Chicago
Writing by Paul Simao
Editing by Alison Williams, Howard Goller and Sonya Hepinstall)

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